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November 2015 Investor Presentation – Baytex Energy Corp.

Baytex Energy Corp. · Nov 6, 2015 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2015 Investor Presentation – Baytex Energy Corp. – slide 1
    November Presentation
  2. November 2015 Investor Presentation – Baytex Energy Corp. – slide 2
    Baytex Key Attributes North American Oil Focused Producer Operating for Over 20 Years Focus on per share growth in production, cash flow and reserves Exceptional Production growth focused on crude oil and liquids Growth Platform…
  3. November 2015 Investor Presentation – Baytex Energy Corp. – slide 3
    Corporate Profile Market Summary Ticker Symbol TSX / NYSE: BTE Average Daily Volume (1) CAN: 8,000,000 / US: 2,700,000 Shares Outstanding 210.2 million Market Capitalization / Enterprise Value 1.3 billion / 3.2 billion Total…
  4. November 2015 Investor Presentation – Baytex Energy Corp. – slide 4
    Three Key Resource Plays Eagle FordTexas 34% Peace River Q3/15 production of Texas 34% Q3/15 production of 39,000 boe/d 21,200 boe/d Heavy Oil 51% 39-45 net wells planned 6Light netOilwells in 2015 22% for 2015 Developed…
  5. November 2015 Investor Presentation – Baytex Energy Corp. – slide 5
    YTD 2015 Highlights Generated production of 85,800 boe/d, up 16% year-over-year Advanced multi-zone development potential of Eagle Ford acreage 13 multi-zone projects in various stages of execution and production Continued to…
  6. November 2015 Investor Presentation – Baytex Energy Corp. – slide 6
    Balance Sheet / Debt Composition Anticipate exiting 2015 with senior debt (bank debt and long-term notes) of 1.8 billion - 1.9 billion Senior debt to Bank EBITDA ratio (twelve-month trailing) of under 3.5x at year-end 2015, compared…
  7. November 2015 Investor Presentation – Baytex Energy Corp. – slide 7
    Cost Reduction Focus Baytex continues to take active measures to reduce costs where possible while maintaining efficiency in our operations and the safety of our employees and contractors. We are focused on cost reduction…
  8. November 2015 Investor Presentation – Baytex Energy Corp. – slide 8
    Cost Reduction Initiatives Drilling Eagle Ford (US) (1) High graded best drilling rigs and completion crews 8.2M Reduced drilling days despite longer well laterals 6.0M Recent drill achieved a record of 6.5 days spud to total…
  9. November 2015 Investor Presentation – Baytex Energy Corp. – slide 9
    Cost Reduction Initiatives Operating and G&A Operating expenses reduced 15% vs. budget On a per-boe basis, down 14% vs. budget (YTD 2015 actual = 10.55/boe) Optimization of operational practices Trucking and fluid hauling Well…
  10. November 2015 Investor Presentation – Baytex Energy Corp. – slide 10
    Strong Capital Efficiencies Driving Down Costs Capital efficiency improvement in 2014 driven by portfolio enhancements, including: Addition of the Eagle Ford Divestiture of North Dakota and other non-core assets Reduced thermal…
  11. November 2015 Investor Presentation – Baytex Energy Corp. – slide 11
    Attractive Rates of Return 150% Internal Rate of Return (1) (2) (3) 125% Eagle Ford - US6.0M/well Peace River - C2.8M/well 100% Lloydminster - C750K/well Break-Even WTI (4) 75% 50% 25% 0% 45 50 55 60 65 70 WTI…
  12. November 2015 Investor Presentation – Baytex Energy Corp. – slide 12
    High Quality Investment Opportunities Single Well Economics Eagle Ford Peace River Lloydminster Well Costs DC&E (1) ( millions) US6.0 2.8 0.75 Production (boe/d) IP30 1,000 - 1,200 300 - 500 70 - 80 % Liquids 60% - 70% 100%…
  13. November 2015 Investor Presentation – Baytex Energy Corp. – slide 13
    The Eagle Ford
  14. November 2015 Investor Presentation – Baytex Energy Corp. – slide 14
    Baytex Acreage Position The Eagle Ford Provides Baytex With Exposure to a World Class Oil Resource Play Overview of Acreage - 23,000 net contiguous acres in the Sugarkane Field in the core of the liquids-rich Eagle Ford shale -…
  15. November 2015 Investor Presentation – Baytex Energy Corp. – slide 15
    Eagle Ford Development Development to-date has targeted the Lower Eagle Ford Development occurring at 40-acre and 60- acre spacing We are seeing an approximate 28% improvement in 30-day IP rates since acquisition Extending Lower…
  16. November 2015 Investor Presentation – Baytex Energy Corp. – slide 16
    Eagle Ford Stack and Frac Highlights Four well pad on production February 14, 2015 Four zones targeted: Lower EF, Upper-Lower Murphy Sinclair EF, Upper EF, Austin Chalk Average 30-day IP rate 1,450 boe/d Sienkiewicz Average lateral…
  17. November 2015 Investor Presentation – Baytex Energy Corp. – slide 17
    Eagle Ford Individual Well Economics 100% Internal Rate of Return (1) (2) (3) 80% US6.0M/well US8.2M/well 60% 40% 20% 0% 45 50 55 60 65 70 WTI (US/bbl) (1) Individual well economics are based on constant pricing…
  18. November 2015 Investor Presentation – Baytex Energy Corp. – slide 18
    Eagle Ford Performance Increasing Performance and Efficiency - Improvements in drilling and completion design have increased 30-day IP rates by approximately 84% since Q4/2011 with 180-day cumulative recovery increasing 69% over the…
  19. November 2015 Investor Presentation – Baytex Energy Corp. – slide 19
    Completion Improvements Increasing Lateral Length, Frac Stages and Proppant - Since 2011, the average lateral length per well has increased 18% to approximately 5,700 feet, the number of frac stages per well has increased 44% to 23…
  20. November 2015 Investor Presentation – Baytex Energy Corp. – slide 20
    Pricing Exposure The Eagle Ford Significantly Enhances Our Operating Netback Our light oil and condensate production in the Eagle Ford is priced primarily off a Louisiana Light Sweet (LLS) benchmark, which typically trades at a…
  21. November 2015 Investor Presentation – Baytex Energy Corp. – slide 21
    Heavy Oil Overview 24
  22. November 2015 Investor Presentation – Baytex Energy Corp. – slide 22
    Peace River Oil Sands Multi-Lateral Drilling Drives Strong Capital Efficiencies Area Statistics Land Holdings 310 net sections Production (Q3/2015) 21,200 boe/d 2P Reserves (YE14) (1) 72.6 mmboe Drilling Inventory (2) 6.5 years…
  23. November 2015 Investor Presentation – Baytex Energy Corp. – slide 23
    Multi-Lateral Cold Horizontal Wells Reservoir Characteristics (1) Formation Bluesky Depth 600 metres Completion Open Hole Oil Quality 11 API Average Porosity 28% Permeability 1 - 5 darcies Oil Saturation 70% Recovery Factor 5 -…
  24. November 2015 Investor Presentation – Baytex Energy Corp. – slide 24
    Peace River Individual Well Economics 160% 140% Internal Rate of Return (1) (2) (3) 120% 100% 2.8M/well 3.4M/well 80% 60% 40% 20% 0% 45 50 55 60 65 70 WTI (US/bbl) (1) Individual well economics are based on…
  25. November 2015 Investor Presentation – Baytex Energy Corp. – slide 25
    Lloydminster Lloydminster Heavy Oil Heavy Oil Shift to Horizontal Drilling Expands Inventory Area Statistics Land Position 652 net sections Production (Q3/2015) 13,800 boe/d 2P Reserves (YE14) (1) 49.5 mmboe Drilling…
  26. November 2015 Investor Presentation – Baytex Energy Corp. – slide 26
    Lloydminster Development Reservoir Characteristics (1) Formation Mannville Group Depth 350 800 metres Completion Horizontal Slotted Liner / Vertical Stacked Pays Oil Quality 10 16 API Average Porosity 30% Permeability 0.5…
  27. November 2015 Investor Presentation – Baytex Energy Corp. – slide 27
    Lloydminster Individual Well Economics 160% 140% Internal Rate of Return (1) (2) (3) 120% 100% 80% 60% 750K/well 40% 950K/well 20% 0% 45 50 55 60 65 70 WTI (US/bbl) (1) Individual well economics are based on…
  28. November 2015 Investor Presentation – Baytex Energy Corp. – slide 28
    The Value Proposition We have recalibrated our business to the current oil price environment Retain significant leverage to a rising crude oil price environment Exceptional asset base focused on crude oil & liquids Significant…
  29. November 2015 Investor Presentation – Baytex Energy Corp. – slide 29
    Supplementary Information 32
  30. November 2015 Investor Presentation – Baytex Energy Corp. – slide 30
    Production Growth Production Breakdown 5 Year Production CAGR = 14% Q3/2015 Actual (per share CAGR = 1.5%) 100,000 NGLs 11% Light Oil 30% 80,000 Heavy Oil 40% Gas 84,000 19% 60,000 boe/d 78,321 40,000 57,196 53,986…
  31. November 2015 Investor Presentation – Baytex Energy Corp. – slide 31
    Reserves Growth / Contingent Resources 5 Year Reserve CAGR = 17% 2P Gross Reserves Breakdown (per share CAGR = 7%) Company Total = 432 MMboe Gas NGLs Heavy Oil 14% Gas 17% 53% NGLs 15% NGLsLight NGLs Oil 22% 17% 17% 16%…
  32. November 2015 Investor Presentation – Baytex Energy Corp. – slide 32
    Funds from Operations Sensitivities Estimated Effect on Estimated Effect on Annual Funds from Annual Funds from Sensitivities (excluding effect of hedging) Operations ( Millions) Operations (Per Share) Change of US1.00/bbl WTI…
  33. November 2015 Investor Presentation – Baytex Energy Corp. – slide 33
    Crude Oil Hedge Portfolio Q4/2015 2016 2017 Fixed Hedges Volumes (bbl/d) 9,667 6,250 --- Hedge (%) (1) 20% 15% --- Fixed Price (US/bbl) 76.37 63.64 --- 3-Way Option Volumes (bbl/d) 1,000 9,500 2,000 Hedge (%) (1) 2% 23% 5%…
  34. November 2015 Investor Presentation – Baytex Energy Corp. – slide 34
    Natural Gas / Foreign Exchange Hedge Coverage Q4/15 2016 2017 Natural Gas AECO Volumes Hedged (GJ/day) 20,000 15,000 --- % of Volumes Hedged at Fixed Price (1) 25% 17% --- Average AECO Swap Price (C/GJ) 2.88 2.96 --- NYMEX…
  35. November 2015 Investor Presentation – Baytex Energy Corp. – slide 35
    Marketing - Crude by Rail Rail a Key Component of Market Access - Trucking flexibility helps optimize value of production - Rail has become an effective vehicle for management of heavy oil differentials - Undiluted heavy oil sales…
  36. November 2015 Investor Presentation – Baytex Energy Corp. – slide 36
    Share Ownership Breakdown Ownership Breakdown Institutional 59% Institutional - Institutional - Retail 41% U.S. Retail - Canada Europe / Asia 15% 100% 30% 4% Canada 70% Retail - U.S. Institutional - 11% U.S. 26% Canada…
  37. November 2015 Investor Presentation – Baytex Energy Corp. – slide 37
    Capital Program Efficiency 3-Year 2012 2013 2014 Average 2012-14 Capital Expenditures (millions) Exploration and development 418.6 550.9 766.1 1,735.6 Acquisitions (net of dispositions) (170.9) (39.1) 2,545.1 2,335.1 Total 247.7 511.8…
  38. November 2015 Investor Presentation – Baytex Energy Corp. – slide 38
    Contact Information Suite 2800, Centennial Place James L. Bowzer 520 3rd Avenue S.W. President & Chief Executive Officer Calgary, Alberta T2P 0R3 (587) 952-3000 T: (587) 952-3000 1-800-524-5521 Rodney D. Gray www.baytexenergy.com…

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